NOTE 12 - SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2013

Note 12 - Share-Based Compensation Tables

Impact on operations of recording share-based compensation

	Year Ended December 31,
	2013	2012
(in thousands)
Cost of goods sold	$46	$49
Research and development	80	112
Selling, general and administrative	297	364
Total share-based compensation	$423	$525
Impact on net income per share:
Basic and diluted	($0.05)	($0.07)

Fair value of share-based awards for employee stock options

	Employee Stock
	Options
	2013	2012
Risk-free interest rates	0.92%	0.64%
Volatility factors	0.54	0.53
Expected life of the option in years	4.00	4.00
Expected dividend yield	None	None

Stock option grants

	2013			2012
	Options	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Life in Years	Options	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Life in Years
Outstanding at beginning of year	1,158,405	$4.00		1,038,011	$4.74
Granted	133,000	2.00		390,000	2.37
Exercised	-	-		(29,844)	3.82
Cancelled, Expired or
Forfeited	(386,749)	4.50		(239,762)	4.62
Outstanding at end of year	904,656	$3.49	3.52	1,158,405	$4.00	3.43
Vested or expected to vest at the end of the period	827,155	$4.19	2.54	1,046,028	$4.51	1.98
Exercisable at end of year	486,141	$3.59	2.54	609,812	$4.10	1.98

Restricted stock award including performance-based stock award activity under our share-based compensation plan

	2013		2012
	Awards	Weighted - Average Grant Date Fair Value	Awards	Weighted - Average Grant Date Fair Value
Outstanding at beginning of year	130,000	$2.60	30,378	$5.10
Granted	180,400	1.97	112,500	2.19
Vested	(47,375)	2.23	(11,353)	5.00
Cancelled	(15,950)	3.13	(1,525)	4.11
Outstanding at end of year	247,075	$2.18	130,000	$2.60

Unvested options grants and restricted stock awards

	December 31, 2013	December 31, 2012
Unamortized future compensation expense	$898,625	$1,040,385
Remaining weighted average amortization period in years	2.57	2.65